System and method for mass transit merchant payment

ABSTRACT

Methods, systems and computer program products are provided for enabling payment of transit system fees using a financial transaction instrument. Entry is permitted onto a transit system by recognition of information included in an identification number stored on a financial transaction instrument. The identification number stored on the financial transaction instrument is associated with a transit system fee registered for each use of the transit system. A plurality of transit system fees associated with the same identification number from use of the financial transaction instrument is aggregated, and payment for the aggregated transit system fees is requested from a transaction account associated with the financial transaction instrument.

CROSS REFERENCE TO RELATED APPLICATIONS

This application is a continuation of, and claims priority to, U.S. Ser.No. 12/768,900 filed on Apr. 28, 2010 and entitled “SYSTEM AND METHODFOR MASS TRANSIT MERCHANT PAYMENT.” The '900 application is acontinuation of U.S. Pat. No. 7,731,086 issued on Jun. 8, 2010 (fka U.S.Ser. No. 11/423,388, filed on Jun. 9, 2006 and entitled “SYSTEM ANDMETHOD FOR MASS TRANSIT MERCHANT PAYMENT”). The '086 patent claimspriority to, and the benefit of, U.S. Provisional Patent ApplicationNos. 60/689,300, filed Jun. 10, 2005, and 60/762,011, filed Jan. 24,2006. All of which are hereby incorporated by reference in theirentirety.

BACKGROUND OF THE INVENTION

1. Field of the Invention

The present invention generally relates to methods for making creditcard purchases of everyday transit fares and collecting individual farepayments by a mass transit operator over a predetermined period andsubmitting an aggregated authorization and settlement request at the endof the pre-defined period (e.g., a day or a number of days). Theinvention also relates to methods for dynamically obtaining credit cardnumbers at the time of payment submission, so that credit cards numbersare not stored locally at the mass transit operator's site.

2. Related Art

Regular commuters as well as infrequent mass transit riders would likethe convenience of not requiring a separate payment device for payingtransit fares. Particularly in today's “plastic economy”, riders are asanxious to use their credit cards to make instant fare payments as withany other category of purchase. Attempts to use a credit card directlyfor payment of one-time, sporadic, or regular mass transit fares,however, have not been successful due to various obstacles andincompatibilities.

Specifically, single ride transit fare payments cannot be authorizedindividually by a credit card issuer in a mass transit environment,i.e., at the time that the passenger enters the transit location orboards a particular mode of transportation. The rapid response timerequired for processing payment information when entering and/or exitingmass transit gates, typically 90-300 milliseconds, is too short tocomplete a traditional transaction instrument payment, such as a debitor credit card transaction, that requires authentication and approval ofthe payment device. Consequently, the excessive transaction wait timehas, until now, made the payment of mass transit fares with aconventional credit card impractical.

At the same time, mass transit fares are low value purchases (typically$2-$3), making the processing of individual transactions a highlyunprofitable venture for any credit card issuer.

One solution would be to store credit card numbers on a central computerof the mass transit operator. However, when credit card numbers arestored on a merchant system (for example on a local disk), thisinformation is then susceptible to hacking and distribution of activecredit card numbers for fraudulent use. Many incidents of this naturehave been reported, which make it necessary for the credit cardorganization to cancel the compromised credit cards numbers and issuenew cards to the affected cardmembers.

Another conventional solution to this problem is to have the customerload value on a card to be used for mass transit payment. Here, masstransit users may pre-load money value on a “pre-paid” fare card, andthe value is reduced for each trip the user takes. Users need to trackthe residual value on the card and “top it up” when the value dropsbelow the price of a trip. The value loaded is recorded by the masstransit operator's system, and a fare is deducted each time the customerenters or leaves the transit system. With stored value mass transitcards, users may use credit cards to, at most, either load a lump-sumvalue on the mass transit payment card or purchase “time ticket” cardsfor a prepaid daily, weekly, monthly, or yearly duration.

Other conventional approaches to linking different types of financialtransaction instruments with stored-value mass transit fare cards areknown in the art. One such implementation is the Octopus Card, which isa rechargeable, contactless stored-value card for paying fares on HongKong's public transportation system and is accepted for retail purchasesat various stores and restaurants throughout the city. For retailpurchases, electronic cash is deducted from the remaining balance on theCard. Then, for mass transit operation, the Octopus Card utilizes Sony®Corporation's FeliCa proprietary contactless radio frequencyidentification (RFID) technology, comprising a 13.56 MHz chip thatenables fare deduction from value stored on the card, allowingcontactless entry into the public transportation system. However, theOctopus Card suffers from the shortcomings associated with stored-valuepayment instruments. Since value is deducted from the Octopus Card witheach ride on the transit system, a user must constantly be aware of thebalance remaining on their card at any given time. Consequently, theneed periodically to refill money onto the card inevitably slows users'commute.

Related to the Octopus Card is the Suica® Card, currently in circulationon the East Japan Railing Company (JR East) throughout parts of Japan.The Suica® Card (“Super Urban Intelligent CArd”) likewise employsSony's® proprietary FeliCa radio frequency identification technology toprovide contactless entry into JR East railway lines, in place ofconventional magnetic strip fare cards. Yet, as with the Octopus Card,Suica® too is merely a stored-value card again requiring users toperiodically add value to their cards.

Another conventional example of a mass transit fare “smart card” linkedto a financial transaction instrument is the Citi® Platinum Select®SmarTrip® MasterCard®, combining the Washington Metropolitan AreaTransit Authority's (WMATA) SmarTrip® fare card with Citi®'s creditcard. This transaction instrument allows users to make retail purchasesat stores, restaurants and services with the credit card function, inaddition to riding the mass transit system operated by WMATA, includingrail and bus service throughout the Washington, D.C. area. However, withthis combined credit card/smart card, the mass transit and financialtransaction functions are operationally distinct, though incorporatedwithin a common payment device. Specifically, while operating as acredit card for ordinary retail purchases, the Citi® Card only stores upto $300 in WMATA transit value, and this stored value must beperiodically reloaded at a mass transit station. Accordingly, althoughthis device presents a step above conventional stored-value cards inthat it provides the functionality of a credit card, the Citi® Cardnonetheless fails to alleviate the burden of having to periodicallyrefill the limited mass transit value.

Given the foregoing, what is needed is a system, method and computerprogram product for enabling payment of transit system fees using afinancial transaction instrument. Specifically, there exists a need forenabling use of a credit card to make mass transit fee payments toeliminate periodic refilling of value onto mass transit fare cards.There is also a need for a transaction instrument that combines the easeof RFID technology with the convenience of credit card transactions aswith ExpressPay™ for mass transit payment. There is also a need toovercome the impracticality of conducting a conventional credit cardtransaction for every ride on a mass transit system. Further still,there is a need to settle financial transactions without storing users'primary account numbers locally on merchant systems.

BRIEF DESCRIPTION OF THE INVENTION

The present invention meets the above-identified needs by providing asystem, method and computer program product for mass transit merchantpayment.

In accordance with one embodiment of the present invention, there isprovided a method for enabling payment of transit system fees using afinancial transaction instrument that proceeds by permitting entry ontoa transit system by recognition of information included in anidentification number stored on a financial transaction instrument,followed by associating the identification number stored on thefinancial transaction instrument with a transit system fee registeredfor each use of the transit system. The method further includesaggregating a plurality of transit system fees associated with the sameidentification number from use of the financial transaction instrument,and then requesting payment for the aggregated transit system fees froma transaction account associated with the financial transactioninstrument.

In accordance with another embodiment of the present invention, there isprovided a method for enabling payment of transit system fees using afinancial transaction instrument that further includes requestingpayment for the aggregated transit system fees by transmitting theidentification number to a transaction instrument issuer for matchingwith a transaction account number associated with the financialtransaction instrument, for processing and settlement.

In accordance with yet another embodiment of the present invention,there is provided a method for enabling payment of transit system feesusing a financial transaction instrument that further includesrequesting payment for the aggregated transit system fees bytransmitting an encrypted secondary transaction account number and atotal aggregated transit system fee amount to a transaction instrumentissuer for matching with a primary transaction account number associatedwith the transaction account, for final processing and settlement.

In accordance with still another embodiment of the present invention,there is provided a method for enabling payment of transit system feesusing a financial transaction instrument that further includesrequesting payment for the aggregated transit system fees bytransmitting the identification number along with a total aggregatedtransit system fee amount to a transaction instrument issuer, for finalprocessing and settlement.

An advantage of the present invention is that it eliminates the need torefill the payment device when using mass transit. Unlike conventionalstored-value cards, the present invention fully integrates fare paymenton mass transit systems into the credit card function, thereby relievingthe user from having to constantly remember the current balanceremaining on their card when routinely riding subways and buses. As withany retail credit card purchase, the user simply pays the bill at theend of some preset period, with the cost of each ride throughout theentire billing cycle aggregated into a single transaction appearing onthe user's billing statement.

Another advantage of the present invention is its compatibility withvarious mass transit systems and operators. Particularly, any masstransit operator is able to provide a transaction instrument issueractive mass transit identification numbers for use on its system, to belinked with a financial transaction instrument that will then allow forthe periodic aggregation of fares into a single transaction forsettlement. Thus, the benefits of the present invention can be extendedto mass transit systems in cities and municipalities across the country,and even internationally. Further, because the RFID technology used forfinancial transactions operates on the ISO-14443 standard in the presentinvention, mass transit operators may over time convert to this uniformprotocol, thus freeing them from current proprietary technologies.

Still another advantage of the present invention is that users' primarytransaction account numbers (i.e., credit card numbers) are at no timestored on the system of the mass transit operator, but instead remain inthe strict possession of the transaction instrument issuer. Sinceprocessing and settlement of the transaction proceeds according toconventional methods for credit card payment, sensitive information isnot stored locally at any site of the mass transit operator. The presentinvention thus safeguards against identity theft and credit card fraud,in addition to the hassle of reports and cancellations of lost or stolencards.

Yet another advantage of the present invention is the versatility itprovides by employing RFID technology for mass transit payment as wellas regular retail purchasing, both in terms of mobility and ease of use(simply swiping the device over the reader) and implementation within avariety of forms (card, cell phone, fob, key chain tag, etc.). Moreover,because the transaction instrument operates on the ISO-14443 protocolfor IC transactions, the present invention is already compatible withexisting retail systems for RFID payment while further promotingstandardization.

Further features and advantages, as well as the structure and operationof various embodiments of the present invention are described in detailbelow with reference to the accompanying drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

The features and advantages of the present invention will become moreapparent from the detailed description set forth below when taken inconjunction with the drawings in which like reference numbers indicateidentical or functionally similar elements.

FIG. 1 is a system block diagram illustrating a transaction accountssystem linked via a series of networks to a transit accounts system inaccordance with one embodiment of the present invention.

FIG. 2 is a system block diagram illustrating a transaction accountssystem linked over a network to a transit accounts system, both systemsadditionally linked to a card issuance bureau over the network inaccordance with one embodiment of the present invention.

FIG. 3 is a schematic illustration of an exemplary gate terminalassociated with the transit accounts system in accordance with oneembodiment of the present invention.

FIG. 4 is a schematic illustration of an exemplary RFID reader asincorporated within the gate terminal in accordance with one embodimentof the present invention.

FIG. 5 is a schematic illustration of an exemplary RFID transactioninstrument in accordance with one embodiment of the present invention.

FIG. 6 is a flowchart outlining a process for combining the function ofa mass transit identification number with a transaction instrumentassociated with a financial transaction account in accordance with oneembodiment of the present invention.

FIG. 7 is a flowchart outlining the operation of a RFID transactioninstrument for payment of mass transit fees as part of a transaction inaccordance with one embodiment of the present invention.

FIG. 8 is a flowchart outlining one method for settlement of anaggregated mass transit transaction in accordance with one embodiment ofthe present invention.

FIG. 8A is a flowchart outlining the optional step of authorizingindividual transactions prior to settlement in accordance with oneembodiment of the present invention.

FIG. 9 is a flowchart outlining another method for settlement of anaggregated mass transit transaction in accordance with one embodiment ofthe present invention.

FIG. 10 is a flowchart outlining yet another method for settlement of anaggregated mass transit transaction in accordance with one embodiment ofthe present invention.

FIG. 11 is a flowchart outlining an exemplary transaction on a masstransit system using the transaction instrument in accordance with oneembodiment of the present invention.

FIG. 12 is a block diagram of an exemplary computer system useful forimplementing the present invention.

DETAILED DESCRIPTION

I. Overview

The present invention is described in more detail herein in terms of anexemplary embodiment. This is for convenience only and is not intendedto limit the application of the present invention.

Generally speaking, the invention combines the functionality ofExpressPay™, which is an American Express® financial transactioninstrument that uses radio frequency identification (RFID) technology,with a system for making payment in mass transit (MT) systems.Therefore, the present invention operates analogously to a purchase doneat a grocery store, in which a number of purchases, e.g., mass transitfares, are collected and paid for in a single transaction. In such asystem, a mass transit system identification number is used to track andrecord the collection of these items over a period of time. At the endof the period of time, the mass transit operator, acting as anyconventional merchant, requests payment for the items acquired by thetraveler from the issuer of the payment device (for example AmericanExpress). From that point, the transaction is handled similar to atypical merchant transaction.

Remarkably, the entire mass transit operator is viewed and processed asa single merchant. The traveler enters the merchant “store,” i.e., themass transit system, and collects items that will be purchased. Theseitems are the services provided by the mass transit operator such astrain and subway rides, bus rides, use of parking facilities, and anyother service offered by the mass transit operator.

During a typical RFID transaction, a RFID transaction device user maytransmit information concerning the user's transaction account to amerchant point of sale (POS). The information received by the POS mayinclude, for example, the transaction device identifier or accountnumber. The information may further include personal, demographic,biometric or statistical information related to the transaction deviceuser. Upon receiving the information, the merchant POS ordinarilyprovides the information to a merchant system.

In the present invention, a transaction device identifier in the form ofa mass transit identification number is linked to a financialtransaction device, particularly a credit card, equipped with RFIDtransmission capability. Once activated, the user waves theirtransaction instrument over the gate reader serving as the merchantpoint of sale, to gain access onto a train, subway or bus. The RF signalemitted by the transaction instrument is recognized by the RFID readercontained within the gate terminal and the “transaction” is recordedonto the system of the mass transit operator. Thus, the presentinvention applies the convenience of RFID technology for payment ofeveryday commutes on mass transit systems.

The system of the present invention also changes the manner in which theMT operator accepts and processes payment. Instead of having thetraveler pay at the time of the ride, the customer actually has a tokenthat identifies the customer to the mass transit operator and allows themass transit operator to record the services used by the customer. Thenumber of rides and/or distance and/or time traveled by the user trackedby the MT number is then stored as data on the system of the masstransit operator. At some agreed time period (or spending limit), themass transit operator submits an authorization request to the acquirerto obtain payment for the services used by the customer in the agreedtime period (or up to a specified spending limit). Standard financialnetworks (such as those provided by American Express, Visa, MasterCardor Discover card) may be used to conduct this transaction. Accordingly,the present invention further provides the advantage of deferred creditcard payment for everyday purchases of mass transit fares.

In certain embodiments, the transaction instrument, i.e., the paymentdevice, may comprise two separate electronic chips—one for handlingretail payments and one for handling mass transit fares. The device maybe, for example, in the form of a key chain fob or in the form of acard. In other embodiments, in order to reduce costs and make theprocesses simpler, the mass transit payment functionality may be addedto an existing application for retail payment, e.g., ExpressPay™, andmay be run on a single chip.

In the present invention mass transit transactions are compiled on aperiodic basis and transmitted from time to time as a singleauthorization request to the credit card issuer, e.g., American Express.This may require a software and/or hardware change for the mass transitoperator, so that instead of the operator receiving payment at the pointof making the transaction, the transaction data is stored and thenprovided to the credit card organization at a later point. Thus, thesystem is referred to as a “post-pay” system, as opposed to a “prepaid”system.

However, embodiments of the present invention also may be implemented asa prepaid system. For example, customers may be issued a prepaid card bya credit card organization, such as American Express, or other financialorganization that is managed independently of the mass transitoperator's payment system. Such a prepaid card may be a general prepaidproduct, in the sense that it may be used for retail purchases inaddition to mass transit fee transactions.

The terms “user”, “end user”, “consumer”, “customer”, “participant”,“owner”, “requestor” and/or the plural form of these terms are usedinterchangeably herein to refer to those persons or entities capable ofaccessing, using, being affected by and/or benefiting from the tool thatthe present invention provides for mass transit merchant payment.

Furthermore, the terms “business” or “merchant” may be usedinterchangeably with each other and shall mean any person, entity,distributor system, software and/or hardware that is a provider, brokerand/or any other entity in the distribution chain of goods or services.For example, a merchant may be a grocery store, a retail store, a travelagency, a service provider, an on-line merchant or the like.

A “transaction instrument issuer” is any entity that maintains atransaction account for customers to conduct financial transactionsusing a financial transaction instrument. One example of such entity isAmerican Express, or any other company that provides members withtransaction instruments and thereby maintains corresponding transactionaccounts.

A “transaction account” as used herein refers to an account associatedwith an open account or a closed account system (as described below).The transaction account may exist in a physical or non-physicalembodiment. For example, a transaction account may be distributed innon-physical embodiments such as an account number, frequent-flyeraccount, telephone calling account or the like. Furthermore, a physicalembodiment of a transaction account may be distributed as a financialinstrument.

An “account,” “account number” or “account code”, as used herein, mayinclude any device, code, number, letter, symbol, digital certificate,smart chip, digital signal, analog signal, biometric or otheridentifier/indicia suitably configured to allow a consumer to access,interact with or communicate with a financial transaction system. Theaccount number may optionally be located on or associated with anyfinancial transaction instrument (e.g., rewards, charge, credit, debit,prepaid, telephone, embossed, smart, magnetic stripe, bar code,transponder or radio frequency card).

The account number may be distributed and stored in any form of plastic,electronic, magnetic, radio frequency (RF), wireless, audio and/oroptical device capable of transmitting or downloading data from itselfto a second device. A customer account number may be, for example, asixteen-digit credit card number. Each credit card issuer has its ownnumbering system, such as the fifteen-digit numbering system used byAmerican Express Company of New York, N.Y. Each issuer's credit cardnumbers comply with that company's standardized format such that anissuer using a sixteen-digit format will generally use four spaced setsof numbers in the form of

-   -   N₁N₂N₃N₄N₅N₆N₇N₈N₉N₁₀N₁₁N₁₂N₁₃N₁₄N₁₅N₁₆

The first five to seven digits are reserved for processing purposes andidentify the issuing institution, card type, etc. In this example, thelast (sixteenth) digit is typically used as a sum check for thesixteen-digit number. The intermediary eight-to-ten digits are used touniquely identify the customer, card holder or cardmember. A merchantaccount number may be, for example, any number or alpha-numericcharacters that identifies a particular merchant for purposes of cardacceptance, account reconciliation, reporting and the like.

Meanwhile, a “financial transaction instrument” may be a traditionalplastic transaction card, titanium-containing, or othermetal-containing, transaction cards, clear and/or translucenttransaction cards, foldable or otherwise unconventionally-sizedtransaction cards, radio-frequency enabled transaction cards, or othertypes of transaction cards, such as credit, charge, debit, pre-paid orstored-value cards, or any other like financial transaction instrument.A financial transaction instrument may also have electronicfunctionality provided by a network of electronic circuitry that isprinted or otherwise incorporated onto or within the transactioninstrument (and typically referred to as a “smart card”), or be a fobhaving a transponder and an RFID reader.

Importantly, it should be noted that the form of the financialtransaction instrument is not limited to a particular transaction card.Instead, the present invention may be implemented within any deviceconfigured for both RFID retail payments and mass transit ticketing.Such devices may include a fob, key chain ring, tag and, particularly, amobile telephone. In the case of the latter, the phone may operate onthe ISO/IEE-18092 standard, compatible with the ISO/IEE-14443 standard,for conducting payment and other contactless transactions.

Financial transaction instruments may also be of various functionalvarieties. For instance, “open cards” are financial transaction cardsthat are generally accepted at different merchants. Examples of opencards include the American Express®, Visa®, MasterCard® and Discovercards, which may be used at many different retailers and otherbusinesses. In contrast, “closed cards” are financial transaction cardsthat may be restricted to use in a particular store, a particular chainof stores or a collection of affiliated stores. One example of a closedcard is a pre-paid gift card that may only be purchased at, and only beaccepted at, a clothing retailer, such as The Gap® store.

In contrast, “stored value cards” are forms of transaction instrumentsassociated with transaction accounts, wherein the stored value cardsprovide cash equivalent value that may be used within an existingpayment/transaction infrastructure. Stored value cards are frequentlyreferred to as gift, pre-paid or cash cards, in that money is depositedin the account associated with the card before use of the card isallowed. For example, if a customer deposits ten dollars of value intothe account associated with the stored value card, the card may only beused for payments up to ten dollars. Presently, all conventional farepayment devices as those described above exemplify stored-valueinstruments that inevitably require refilling the value.

The term “mass transit operator” refers to any entity whether regionalor local that maintains a transportation system within a givengeographic area such as, for example, within a city or suburb. The“transit system” may comprise a combination of various transportationmodes, such as, for example, a subway, train, shuttle, bus system or anyother form of regularly-operating public or private transportationsystem. Examples of mass transit operators include, but are not limitedto, the Washington Metropolitan Area Transit Authority (WMATA), theMetropolitan Transit Authority for the State of New York (MTA), and theRegional Transportation Authority (RTA) including the Chicago TransitAuthority (CTA).

The “mass transit identification number” (“MT number”) is anidentification number created by the mass transit operator andassociated with a mass transit account. This number identifies an activemass transit account once it has been established, and is used to trackand store the number of transactions, that is, the number of ridesand/or distance traveled by the user, for eventual aggregation.

The mass transit operator creates a new MT number associated with eachnew active MT account it maintains, and forwards the MT number to eitherthe transaction instrument issuer directly or, alternatively, to a cardissuing bureau to be linked with a financial transaction account. The MTnumber may be provided individually or in a series as activatedmicrochip inlays. An example of such MT number is the SmarTrip® numberissued by the Washington Metropolitan Area Transit Authority.

Furthermore, the “card issuance bureau” may be an outside vendor orentity that performs the physical process of linking the microchipcontaining the MT number and the microchip containing the RFID financialtransaction account information (e.g. Express Pay™), incorporating thetwo within a single payment device such as a credit card, key chain fob,or mobile telephone. Alternatively, the card issuing bureau mayincorporate the account information for both the mass transit accountand the financial transaction account into a single microprocessor,housed within a card, key chain fob, or any other payment device.

As used herein, an “acquirer” may be anyone who operates and maintainscomputer systems and databases (which may be the credit card issuer, butis typically a third party) for facilitating the routing of a paymentrequest to an appropriate account issuer. The acquirer may route thepayment request to the account issuer in accordance with a routingnumber, wherein the routing number corresponds to the account issuer.The routing number may be provided by the RFID transaction instrument.The “routing number” in this context may be a unique network address orany similar device for locating an account issuer on a network.Traditional means of routing the payment request in accordance with therouting number are well understood. As such, the process for using arouting number to provide a payment request will not be discussedherein.

II. System

FIG. 1 is a system diagram of an exemplary embodiment of the presentinvention. The issuer of the transaction instrument maintains atransaction accounts system 105, which processes and stores informationrelating to the transaction accounts. Transaction accounts system 105may include, for example, a server 110 configured to communicate with anumber of client computers via a network (depicted in FIG. 1 as linesconnecting the server to the client computers), e.g., a local areanetwork (LAN), or a mainframe computer configured to communicate with anumber of terminals.

Transaction accounts system 105 includes a transaction database 115, amass transit database 120, and an accounts database 125. Duringoperation, any data regarding a particular account holder with a linkedmass transit account is stored in the appropriate corresponding databasein transaction accounts system 105, with transaction accounts server 110processing the data among the several linked databases and clientcomputers 130, as described below.

Transaction database 115 stores all information relating to transactionsconducted with the financial transaction instrument linked to thetransaction account. For instance, when in a given billing cycle a userpurchases clothing at an outlet store, dinner at a restaurant, and takesa total of 46 rides on the subway, data relating to the respectivetransactions is transmitted by the outlet store, the restaurant and themass transit operator to the transaction instrument issuer. Assumingeach transaction is individually approved, the instrument issuer payseach separate merchant and issues a bill to the account holder. Thetransaction data is stored in the transaction database for billing andrecord-keeping purposes, among other uses.

Mass transit database 120 stores activated mass transit identificationnumbers (MT numbers) received from the mass transit operator. Once themass transit operator activates and forwards at least one new MT numberto the transaction instrument issuer, the number is linked to afinancial transaction account of an eligible customer.

There is also associated with server 110 an account database 125 storingidentification, personal, and contact information provided by accountholders to the transaction instrument issuer, together with the accountnumber for the holder's transaction account with which all of theforegoing information is associated. The information may include theaccount holder's name, address, Social Security number, telephonenumber, and e-mail address, as well as data indicating whether they havea mass transit account linked with their financial transactioninstrument account.

Of course, the present invention is not limited to only the databasesmentioned above, and additional databases as part of transactionaccounts system 105 storing other information may also be provided.These databases may be stored as a single database or as physically orlogically separate databases, as depicted in FIG. 1. The physicalstorage device or devices may be either internal or external totransaction accounts system server 110.

There are also several client computers 130 associated with transactionaccounts system 105, each capable of accessing this system to retrieveinformation stored in any of the databases depicted in FIG. 1. It is tobe understood that although only one client computer appears in system105 in FIG. 1, there may be numerous client computers connected to thetransaction accounts server via various types of network and directconnections.

Also illustrated in FIG. 1 is a transit accounts system 135 incommunication with transaction accounts system 105 via a closed network140, such as the American Express® Network for conducting securefinancial transactions. Transit accounts system 135 may, for example,include a server 145 configured to communicate via a LAN, or any otherconventionally known set of links, with a number of client computers orterminals 130. The transit accounts server processes stored informationrelating to both active and closed mass transit accounts for riders ofthe mass transit system.

Transit accounts system 135 comprises a transaction database 150, anactive accounts database 155, a closed accounts database 160, as well asa plurality of gate terminals 165 located throughout a multitude ofstations comprising the mass transit operator's service network or,alternatively, fixed into various modes of transportation, includingbuses. In addition, there may be several client computers 130 connectedto transit accounts server 145.

Transit accounts system 135 includes a transaction database 150 thatstores information on individual customers' use of the mass transitsystem, based on the number of times the customer passes through gateterminals 165 located at the numerous mass transit stations.Specifically, database 150 maintains a running tally for each MT numberentering or exiting the mass transit system so that every ride and/ordistance traveled is recorded and stored in the transaction database forperiodic tabulation into a single transaction.

There is also associated with transit accounts system 135 an activeaccounts database 155 storing information received from the transactioninstrument issuer over a data link. The information stored within thisdatabase constitutes the active MT numbers originally provided by themass transit operator that have subsequently been linked to a financialtransaction instrument by the instrument issuer. The MT numbers storedin this database comprise mass transit accounts for which thetransaction instrument issuer has verified that the user has a validtransaction account with a clear line or credit for settlingtransactions conducted via the financial transaction instrument.

FIG. 1 further illustrates a closed account database 160 connected totransit account server 145. In contrast to active accounts database 155,the closed accounts database 160 stores those MT numbers identified bythe transaction instrument issuer as having a cancelled or temporarilysuspended transaction account, and therefore constituting a closed masstransit account. The information stored within the closed accountsdatabase is used by the mass transit operator as a reference list toprevent a user presenting a closed MT number from fraudulently ridingthe mass transit system and deferring payment until the close of thebilling period.

In FIG. 1, transaction accounts system 105 is connected to transitaccounts system 155 by a data link 140, which may be a secure “paymentnetwork” or other type of dedicated electronic link. This link 140allows sensitive information, including transaction account numbers, topass over a secure channel between the two servers, in order to process,authorize, and complete a financial transaction as, for instance, withany conventional credit card transaction involving a merchant andinstrument issuer. The data may be transmitted between the systemsusing, for example, a secure encrypted messaging protocol (SCMP). In thepresent embodiment, network 140 may constitute any existing proprietarynetwork that presently accommodates transactions for credit cards, debitcards, loyalty cards, and other types of financial/banking cards.Specifically, payment network 140 is a closed network that is assumed tobe secure from eavesdroppers. Examples of the payment network includethe American Express®, VisaNet® and the Veriphone® network. Suchconnections are widely known in the art and will therefore not beexplained in greater detail herein.

Transaction accounts server 110 and transit accounts server 145 may eachbe connected to an online systems server 170 within their respectivesystems, in order that both systems may additionally communicate over apublic network 175, e.g., the Internet. Under this configuration,transit account system 135 may be accessible from multiple locations, aswhen more than a single mass transit system is connected thereto.

Online systems servers 170 depicted in FIG. 1 may be any server known inthe art, capable of supplying information from the databases of onesystem to the other system, as well as to a plurality of clientcomputers 130 over the network. The content of the information providedmay be written and subsequently viewed in any conventional networklanguage and/or graphics format including HTML, Java Script, XML, andthe like. Furthermore, the content of the information passing betweenthe transaction accounts system and the transit accounts system may besecured by any conventional encryption means including SSL, PGP®, or anyother algorithmic methods for electronically securing information. In aparticularly preferred embodiment, the data passing between the systemsover network 175 includes a digital signature for authenticationpurposes.

Information may be retrieved from online systems server 170 in eachrespective system of FIG. 1 by a client computer 130, which may belocated at the facilities of the mass transit operator and instrumentissuer. Such client computers may be personal computers, as well asterminals, workstation, or any other device for enabling operators ofeither system to access the information stored therein.

In an alternative embodiment, as illustrated in FIG. 2, transactionaccounts system 105 and transit accounts system 135 may be in connectionwith a card issuance system 205, maintained by a card issuance bureau,over a network 175. Card issuance system 205 links the issuance bureau,an independent vendor with which the instrument issuer has contracted toassemble the physical transaction device, to some of the informationstored on the transaction accounts and transit accounts systems so thatit may access data necessary for assembly of the transaction instrument.Card issuance system 205 includes a card issuance server 210 connectedby data links, e.g., a network, to both a mass transit database 120 andan accounts database 125.

Card issuance server 210 may be any type of server conventionally knownin the art, capable of processing information stored within any of thenumber of databases comprising card issuance system 205. Issuance server210 is further connected via an electronic link 175, such as a privatenetwork, the Internet, or other type of data connection, to bothtransaction accounts server 110 at the transaction account issuer andtransit accounts server 145 at the mass transit operator, and theissuance server is configured for the communication of data (such a MTnumbers and transaction account numbers), between these respectivesystems.

Associated with card issuance server 210 is an accounts database 125that stores information relating to the financial transaction accountsof the transaction instrument issuer's customers. Such information mayinclude the transaction account number as well as the customer'spersonal information, as provided by the instrument issuer. Certainpieces of information stored on the transaction accounts database may beincorporated into the transaction instrument device, e.g., credit card,key chain fob, or the like, issued by the card issuance bureau.

Referring again to FIG. 2, a mass transit database 120 is included incard issuance system 205. Mass transit database 120 stores MT numbersthat are provided by the mass transit operator, over a network 175, tothe card issuance bureau for incorporation into the transactioninstrument device. The MT numbers are newly-created by the mass transitoperator for use on its system. It should be noted that while only theabove databases are depicted in FIG. 2, card issuance system 205 is byno means limited to only these and may certainly accommodate additionaldatabases for other types of information.

Card issuance server 210 is connected to both transaction accountsserver 110 and transit accounts server 145 by an electronic link 175.This link may be any conventional data link or network that allows forthe transmission of encrypted information between the three systemsconnected thereby. Because transaction account numbers constitutesensitive information requiring protective measures, in the presentinvention transmission of this information between the various systemsmay be conducted over a secure network as encrypted data.

Card issuance system 205 further includes client computers 130 foraccessing the information stored in the associated databases. As above,client computer 130 may be implemented as, for example, a personalcomputer, workstation, or other terminal for retrieving informationstored on the system. Of course, although only a single client computeris shown, the present invention accommodates a plurality of clientcomputers, all linked to card issuance server 210 in order thatoperators of the card issuance bureau may access the information forphysically integrating the circuitry and associated data of the twoseparate functions into a single transaction device.

A number of entry gate terminals 165 are connected to transit accountsserver 145 at the mass transit operator, which serve as the locations atwhich riders gain access to and exit from the mass transit system.Although only a single gate terminal is depicted in FIGS. 1 and 2, thepresent invention accommodates a plurality of such terminals, located ateach station in the mass transit system. Moreover, each station maycontain numerous gate terminals, all electronically connected over anetwork to the mass transit server. These gate terminals 165 function asthe points-of-sale for customers' use of the mass transit system.

As illustrated in FIG. 3, each gate terminal 165 is configured to readtransaction instruments linked to active MT numbers. That is, theseterminals contain gates 305 or turnstiles 310 along with RFID readers315 to detect the MT number stored in the payment device presented bythe user for interrogation upon entry into and/or exit from the masstransit system (depending on which point the mass transit operatorcollects fares). The reader 315 at each gate terminal 165 detects theradio frequency signal emitted by the transaction instrument at a closedistance. The readers of the present invention are compatible with theISO-14443 protocol standard of certain RFID transaction instrumentsincluding, for example, those issued by the American Express Company forits ExpressPay™ platform, as will be described below in greater detail.

As noted above, the gate terminals 165 function as point-of-salelocations for customers “purchasing” the service offered by the masstransit operator, namely, transportation between given locations, withtheir linked transaction instruments. Each gate terminal 165 is capableof accessing a closed accounts database 160, which preferably is storedin the gate itself, so as to minimize access time. The database ofclosed MT numbers may be periodically uploaded by the mass transitoperator from the closed accounts database, in order to reference apresented MT number against the list so as to initially determinewhether to permit entry.

The transaction instrument contains a transponder configured for RFcommunication with RFID reader 315 at gate terminal 165 in a masstransit station. In general, the transaction begins when the transactioninstrument is presented at gate terminal 165 for entry into the masstransit system and is interrogated by a RFID reader 315 housed withinthe terminal. The transaction instrument and RFID reader 315 may thenengage in mutual authentication during which time a transponder, locatedwithin the transaction instrument, provides the MT number to RFID reader315.

Although the present invention is described with respect to a financialtransaction instrument such as a card, the invention is not to be solimited. Indeed, any device having a transponder configured tocommunicate with a RFID reader via RF communication and conductfinancial transactions may be used including, for example, a key ring,tag, wristwatch or any such form capable of being presented forinterrogation at a mass transit station. Particularly, it should benoted that the various embodiments of the financial transactioninstrument described herein (i.e., single-chip and dual-chip) may justas well be incorporated within a mobile telephone as within a card, tag,or key chain fob. Each alternative embodiment of the financialtransaction instrument is entirely compatible with the systems hereindescribed for both travel on mass transit systems and subsequent accountsettlement.

RFID reader 315 within the gate terminal 165 may be configured tocommunicate using a RFID internal antenna (e.g., an antenna positionedon the same circuit board as the reader circuit). Alternatively, RFIDreader 315 may include an external antenna 320 for communications withthe transaction instrument, where the external antenna may be maderemote to the RFID reader circuit using a suitable cable 325.

Antenna 320 may operate using a frequency of 13.56 MHz, to transmit aninterrogation signal and receive an authentication request signal fromthe transaction instrument. In a preferred embodiment, the antenna isdisposed at the most accessible point on the gate terminal for efficientinterrogation of the RF signal emitted by the transaction instrumentpresented by users. The RFID reader may be located deeper within thegate mechanism, depending upon the individual construction of terminalsused by different mass transit operators. It should therefore beunderstood that the gate terminals of the present invention are notlimited to any particular arrangement or construction.

Gate terminals 165 are configured to detect the RF signals of both theproprietary system protocols currently in use throughout mass transitsystems, as well as the ISO-14443 standard protocol adopted forcontactless payment with financial transaction instruments throughoutthe United States by, among other issuers, American Express, Visa andMasterCard. Gate terminal 165 may be implemented using, for example, theTri-Reader® 2 manufactured by Cubic Corporation (San Diego, Calif.), amulti-protocol interface device capable of processing both ISO-14443Type A and B contactless smart cards, as well as the proprietary CubicGO CARD® contactless smart cards. The terminal may include a processor(e.g., AMTEL ARU7 60 MHz CPU) running any conventional operating systemin order to facilitate reading of the transaction instrument. Such gateterminals thus permit RF contactless entry and exit from mass transitsystems.

FIG. 4 is an exemplary block diagram of RFID reader 315 incorporatedwithin gate terminal 165 of the mass transit operator, in accordancewith the present invention. RFID reader 315 includes, for example, anantenna 405 coupled to a RF module 410, which is further coupled to acontrol module 415. As noted above, the antenna 405 may be positionedremotely from RFID reader 315 and may be coupled to RFID reader 315 viaa suitable cable 325, or other connection.

A protocol/sequence controller 420 may include an optional feedbackfunction for notifying the user of the status of a particulartransaction. For example, the optional feedback may be in the form of anLED, LED screen and/or other visual display, built into the gateterminal, which is programmed to light up or display a static,scrolling, flashing and/or other message and/or signal to inform theuser that the transaction is initiated (e.g., the card is beinginterrogated), the transaction instrument is valid (e.g., card isauthenticated), transaction is taking place, (e.g., MT number is beingread by RFID reader) and/or the transaction is accepted or denied (e.g.,MT number not listed or listed on closed account database).Additionally, such an optional feedback may be accompanied by an audibleindicator (or may consist entirely of the audible indicator) forinforming the user of the transaction status. The audible feedback maybe a simple tone, multiple tones, musical indicator, and/or voiceindicator programmed to signify when the fob is being interrogated, thetransaction status, or the like.

RFID antenna 405 may be in communication with a transponder 425 fortransmitting an interrogation signal and receiving at least one of anauthentication request signal and/or an account data from transactioninstrument. In particular, transponder 425 may be configured to sendand/or receive RF signals in a format compatible with antenna 405. Forexample, where transponder 425 is 13.56 MHz RF rated, antenna 405 may be13.56 MHz compatible. Similarly, where transponder is ISO/IEC 14443rated, antenna 405 may be ISO/IEC 14443 compatible.

RF module 410 may include, for example, transponder 425 in communicationwith authentication circuitry 430 which may be in communication with asecure database 435. Database 435 may store RFID reader 315 identifyinginformation for providing to the transaction instrument for use inauthenticating whether RFID reader 315 is authorized to be provided thetransaction account number stored on a transaction instrument database.

Authentication circuitry 430 may be configured to authenticate thesignal provided by the transaction instrument, and, similarly,authentication circuitry in the transaction instrument may be configuredto authenticate the signal provided by RFID reader 315. Thus, thetransaction instrument and RFID reader 315 engage in mutualauthentication. In this context, “mutual authentication” may mean thatentry into the mass transit system may not take place until thetransaction instrument authenticates the signal from RFID reader, andRFID reader 315 authenticates the signal from the transactioninstrument.

Authentication circuitry 430 may additionally be in communication with aprotocol/sequence controller 440, configured to determine the order ofoperation of the RFID reader 315 components. For example,protocol/sequence controller 440 may command the different components ofRFID reader 315 based on whether a transaction instrument is present.For example, if a transaction instrument is not present, thenprotocol/sequence controller 440 may command the RFID reader 315 toprovide an uninterrupted interrogation signal. That is, theprotocol/sequence controller may command the authentication circuit 430to provide an uninterrupted interrogation signal until the presence of atransaction instrument is realized. If a transaction instrument ispresent, protocol/sequence controller 440 may command the RFID reader315 to authenticate the transaction instrument.

Authentication may mean that protocol/sequence controller 440 maycommand the authentication circuit 430 to provide a transactioninstrument with an authorization code. If a response is received fromtransaction instrument, protocol/sequence controller may determine ifthe response is a response to the RFID reader 315 providedauthentication code, or if the response is a signal requiringauthentication. If the signal requires authentication, then theprotocol/sequence controller 440 may activate the authentication circuitas described above. On the other hand, if the transaction instrumentsignal is a response to the provided authentication code, then theprotocol/sequence controller 440 may command the RFID reader 315 toretrieve the appropriate security key for enabling recognition of thesignal. That is, the protocol/sequence controller 440 may command theauthentication circuit 430 to retrieve from database 435 a security key(e.g., transponder system decryption key), unlock the signal, andcompare the signal to the signal provided by the RFID reader 315 in theauthentication process. If the signal is recognized, theprotocol/sequence controller 440 may determine that the transactioninstrument is authorized to access the transit system. If the signal isnot recognized, then the transaction instrument is considered notauthorized. In which case, the protocol/sequence controller 440 maycommand the RFID controller to interrogate for authorized transactioninstruments.

Once the protocol/sequence controller determines that the transactioninstrument is authorized, the protocol/sequence controller 440 may seekto determine if additional signals are being sent by the instrument. Ifno additional signal is being provided, then the protocol/sequencecontroller 440 may provide all the components of RFID reader 315 toremain idle until such time as a signal is provided. Contrarily, wherean additional transaction instrument signal is provided, theprotocol/sequence controller 440 may determine if the instrument isrequesting access to the gate 165 (e.g., POS device) or if it isattempting to interrogate the RFID reader 315 for return (e.g., mutual)authorization. Where the transaction instrument is requesting access toa gate terminal 165, the protocol/sequence controller 440 may commandthe RFID reader to open communications. In particular, theprotocol/sequence controller may command the gate terminalcommunications interface 445 to become active, permitting transfer ofdata between the RFID reader 315 and the gate terminal 165.

On the other hand, if the protocol/sequence controller determines thatthe transaction instrument signal is a mutual interrogation signal, thenthe protocol/sequence controller may command the RFID reader 315 toencrypt the signal. The protocol/sequence controller 440 may command theencryption authentication circuit 450 to retrieve from database 455 theappropriate encryption key in response to the transaction instrumentmutual interrogation signal. The protocol/sequence controller 440 maythen command the RFID reader 315 to provide the encrypted mutualinterrogation signal to the transaction instrument. Theprotocol/sequence controller 440 may command the authentication circuit450 to provide an encrypted mutual interrogation signal for theinstrument to mutually authenticate. The transaction instrument may thenreceive the encrypted mutual interrogation signal and retrieve from itsauthentication circuitry a RFID reader decryption key.

Encryption/decryption component 450 may be further in communication witha secure account number database 455 which stores the security keysnecessary for decrypting the encrypted transaction instrument MT number.Upon appropriate request from protocol/sequence controller 440,encryption/decryption component (e.g., circuitry 450) may retrieve theappropriate security key, decrypt the MT number and forward thedecrypted MT number to protocol sequence controller 440 in any formatreadable by gate terminal 165.

As noted previously, the transaction instrument (payment device) of thepresent invention may comprise either a single microchip for both themass transit and retail payment functions or, otherwise, two separateelectronic chips within the same device.

When implemented as two chips on a single device, each electronicmicrochip may be provided by a separate entity. An exemplary deviceincludes a first chip for RFID-based retail transactions, such as, forexample, the American Express, Express Pay™ microchip. The second chipmay then comprise the SmarTrip® microchip, supplied by WMATA for RFticketing. Under this dual-chip embodiment, each of the microchipsoperates independently by virtue of different transport protocols. Forinstance, the Express Pay™ chip functions on the ISO-14443 standardwhile the SmarTrip® microchip operates on WMATA's proprietary protocol.Accordingly, the transaction instrument provides for conducting RFtransactions both in stores and restaurants as well as in a mass transitsystem.

Alternatively, a single chip on the transaction device may be programmedfor both RFID-based retail purchases and access to mass transit systems.In such case, a newly-created MT number supplied by a mass transitoperator is programmed onto the RFID-based retail payment microchip. Forexample, the existing ExpressPay™ microchip of American Express Companymay be programmed to store and output an MT number created by WMATA foruse of its subways, buses, parking lots, and the like, throughout theWashington, D.C. area.

Regardless of its precise configuration (i.e., single or dual-chip),however, certain technical features for RFID transactions are common tothe transaction instrument of the present invention. FIG. 5 presentscertain basic technical features of the RFID operation of the foregoingtransaction instrument embodiments, but without in any way limiting thepresent invention to the precise configuration depicted therein.

As shown in FIG. 5, the transaction instrument 505 may include anantenna 510 for receiving an interrogation signal from the RFID reader315 via such antenna. Transaction instrument antenna 510 may be incommunication with a transponder 515. In one exemplary embodiment,transponder 515 is a 13.56 MHz transponder compliant with theISO/IEC-14443 standard, with antenna 510 being a 13 MHz variety.Transponder 515 may be in communication with a transponder-compatiblemodulator/demodulator 520 configured to receive the signal fromtransponder and configured to modulate the signal into a format readableby any later connected circuitry. Further, modulator/demodulator 520 maybe configured to format (e.g., demodulate) a signal received from thelater connected circuitry in a format compatible with the transponderfor transmitting to the RFID reader via antenna 510. For instance, wheretransponder 515 is of the 13.56 MHz variety, the modulator/demodulatormay be ISO/IEC-14443-2 compliant.

Modulator/demodulator 520 may be coupled to a protocol/sequencecontroller 525 for facilitating control of the authentication of thesignal provided by RFID reader 315, and for facilitating control of thesending of the MT number. In this regard, the protocol/sequencecontroller 525 may constitute any suitable digital or logic drivencircuitry capable of facilitating determination of the sequence ofoperation for the transaction instrument inner-circuitry. For example,protocol/sequence controller 525 may be configured to determine whetherthe signal provided by RFID reader 315 is authenticated, and therebyproviding to RFID reader 315 the MT number stored on the transactioninstrument.

Further, the protocol/sequence controller 525 may also be incommunication with authentication circuitry 530 for facilitatingauthentication of the signal provided by RFID reader 315. Authenticationcircuitry 530 may be further in communication with a non-volatile securememory database 535. Secure memory database 535 may comprise anysuitable elementary file system such as that defined by ISO/IEC 7816-4or any other elementary file system allowing a lookup of data to beinterpreted by the application on the chip.

In addition, protocol/sequence controller 525 may be in communicationwith a database 540 for storing at least a transaction instrument 505account data, and a unique transaction instrument 505 identificationcode. Protocol/sequence controller 525 may be configured to retrieve theaccount number from database 540 as desired. Database 540 may be of thesame configuration as database 535 described above. The transactioninstrument account data and/or unique transaction instrumentidentification code stored on database 540 may be encrypted prior tostorage. Thus, where protocol/sequence controller 525 retrieves theaccount data, and or unique transaction instrument identification codefrom database 540, the account number may be encrypted when beingprovided to RFID reader 315.

The transaction instrument may be configured to respond to multipleinterrogation frequency transmissions provided by RFID reader 315. Thatis, RFID reader 315 may provide more than one RF interrogation signal.In this case, transaction instrument 505 may be configured to respond tothe multiple frequencies by including in the instrument one or moreadditional RF signal receiving/transmitting units 545. RF signalreceiving/transmitting unit 545 may include an antenna 550 and atransponder 555 where both components are compatible with at least oneof the additional RF signals provided by RFID reader 315. For example,in one exemplary embodiment, the transaction instrument 505 may includea 134 KHz antenna 550 configured to communicate with a 134 KHztransponder 555. In this exemplary configuration, an ISO/IEC 14443-2compliant modulator/demodulator may not be required. Instead, the 134KHz transponder may be configured to communicate directly with theprotocol/sequence controller 525 for transmission and receipt ofauthentication and MT number signals as described above.

III. Process

FIG. 6 is a flowchart illustrating operation of the mass transitmerchant payment system in accordance with one embodiment of the presentinvention. The process may begin with a customer establishing atransaction account associated with a financial transaction instrumentlinked to a mass transit fare card. Alternatively, the customer mayalready have an existing transaction account associated with a financialtransaction instrument, but may wish to link their transactioninstrument to a transit fare card. Initially, the customer may establishthe transaction account by submitting a completed application to atransaction instrument issuer (step 605). The application may be a paperform mailed or sent by facsimile to the account issuer, a formtransmitted to the account issuer over the Internet, or any othercommonly-used method of transmitting applicant information to an accountissuer.

A mass transit operator such as, for example, the WashingtonMetropolitan Area Transit Authority (WMATA), forwards to the transactioninstrument issuer at least one mass transit identification number (“MTnumber”), either on an individual basis, for a particular applicant, orin batches of pre-approved numbers (step 610). The mass transitidentification number or numbers may be provided, for example,electronically over a network, such as the Internet, or as an activatedmicroprocessor inlay that contains an individual mass transitidentification number (MT number), for incorporation into a financialtransaction instrument such as a credit card.

Once the transaction instrument issuer receives a completed applicationfrom an applicant, it processes the application in order to determinewhether the applicant is eligible for a financial transaction instrument(step 615). If approved, the transaction instrument issuer will proceedto establish a new transaction account. Once a new transaction accounthas been set up for the customer, the instrument issuer may link thefinancial transaction instrument with one of the newly available MTnumbers it has received separately from the mass transit operator (step620).

In an alternate embodiment, once the transaction instrument issuer hasreceived, processed, and approved a new customer for a transactionaccount, it may create a file containing such information and forward itto a separate card issuance bureau for creating the tangible financialtransaction instrument. In this embodiment, the mass transit operatorlikewise provides the separate vendor with a series of available MTnumbers. The card issuance bureau provides an integrated financialtransaction instrument that incorporates the MT number, such as, forexample, a card or key chain fob. In either case, the transactioninstrument is then forwarded to the customer (step 625).

The transaction instrument issuer also forwards to the mass transitoperator both a list of MT numbers associated with active accounts,including newly-linked MT numbers, as well as a list of MT numbersassociated with closed accounts (step 630). Such lists are provided on aregular schedule as, for example, on an hourly, daily or bi-weeklybasis, in order to keep the database of the mass transit operatorcurrent. The list of active account MT numbers supplies the mass transitoperator with the MT numbers that are now in circulation for customerswith a new or existing financial transaction accounts that are in goodstanding. Separately, the transaction instrument issuer provides a listof MT numbers to the mass transit operator for which it has cancelledthe funding source, i.e., the transaction account. The transactionaccount associated with the closed MT number may have been cancelled ortemporarily suspended by the instrument issuer for a variety of reasonsincluding, but not limited to, a recurring failure to pay by the accountholder, fraudulent transactions, bankruptcy, and the like.

The mass transit operator stores the respective information from the twolists into its active account and closed account databases, as discussedabove, including the closed account databases located in the gatereaders or transit stations (step 635). For example, WMATA refreshes allof its gate readers throughout the entire transit system with the mostcurrent information on MT numbers that are no longer in service and/orassociated with closed accounts. On average, such update may takeapproximately 45 minutes for full system propagation of a 10,000-recordclosed account database. It should be noted that this estimated figureis intended merely as an exemplary illustration and in no way restrictsthe present invention.

In the meantime, as further illustrated in FIG. 6, the user receivestheir new financial transaction instrument linked to both a financialtransaction account and MT number from either the transaction instrumentissuer directly or from the card issuance bureau (step 640). Asdescribed earlier, the financial transaction instrument may be in theform of a transaction card, such as, for example, an ExpressPay™ creditcard issued by American Express Company. In one embodiment, the card maycomprise two separate electronic chips corresponding respectively toretail transactions and mass transit fare transactions. In anotherembodiment, the two electronic chips may be combined into a singleelectronic chip programmed to carry out both the retail transaction andmass transit fare functions and may also carry out the functions of adevice into which it is integrated, e.g., the functionality of a cellphone as the transaction instrument.

Once the customer has received their linked financial transactioninstrument, they may need to activate the financial transactioninstrument before use (step 645). For example, the customer maytelephone a number provided by the credit card company or log onto aparticular webpage over a network to input the requested authorizationinformation, such as the card number, a birthdate, password, and/or someother form of identification required to activate the transactioninstrument. Alternatively, the mass transit function may simply beactivated by its initial use within the mass transit system.

Optionally, the customer may wish to register their MT number with themass transit operator. To do so, the customer approaches a card readerstation located at the facility of the mass transit operator and insertstheir new transaction instrument linked to an MT number into the cardreader. As will later be described in greater detail, the MT number isrecognized by the mass transit operator as corresponding to aspecially-designated range of numbers distinct from conventional farecards. The system of the mass transit operator then sends anauthorization request to the transaction instrument issuer over anetwork such as the Internet. In this embodiment, the system 105 of thetransaction instrument issuer then scans the mass transit database 120,and matches that number with the customer's transaction accountinformation stored in the transactions database 115 via the transactionaccount server 110, to determine whether the particular MT number hasever been reported lost or stolen and to check that the customerassociated with the MT number has sufficient credit. Once the instrumentissuer returns an authorization message for the MT number to the masstransit operator, the card reader then writes on the card that the MTnumber has been registered. Such registration provides the basis forsecurity, as a fraud prevention mechanism, as well as efficiency inrestricting the amount of free MT numbers in circulation. The user canthen proceed to enter the mass transit system.

FIG. 7 outlines the process for an exemplary use of the transactiondevice as a mass transit fare device. To activate the transactioninstrument on the mass transit system, the customer simply waves theircard or key chain fob over the gate reader within a range of about 10 cm(step 705). As a result of the radio frequency identification (RFID)technology used by the transaction instrument, the customer's MT numberis transmitted to the RFID reader housed within the gate terminals, withmutual authentication, within milliseconds.

During interrogation, the gate reader recognizes specific informationincluded as part of the MT number stored on an individual transactioninstrument. This specific information is a designation of a range of MTnumbers provided by the transit system operator to the transactioninstrument issuer for operation on the mass transit system, and storedon the active accounts database. Each MT number in this range isindividually correlated with one financial transaction instrument,linked to the user's financial transaction account. To illustrate, theMT number may comprise a four-digit alphanumeric combination stored onthe financial transaction instrument or may contain aspecially-designated subsequence of digits. As part of thisidentification, the first digit of this combination may be a specificletter that identifies the MT number as part of the range of MT numbersassociated with financial transaction instruments collectively stored onthe active accounts database 115 of the mass transit operator, incontrast to conventional fare cards issued by the mass transit operator.Recognition of this specific identifier by the system of the masstransit operator causes it to authorize entry and store informationrecording the transaction, rather than simply deducting the fare priceas with conventional stored-value cards. It is understood that the aboveexplanation is intended for illustrative purposes only, and does notlimit the invention to any particular embodiment for the informationincluded as part of the MT number.

At this time, the mass transit system verifies whether the customer's MTnumber is valid for entry (step 710). The reader circuitry compares thereceived mass transit number with the numbers stored in the database ofclosed numbers stored in the gate terminal, which, as discussed above,is periodically updated from the mass transit operator's centralizedclosed accounts database. If the customer's number does not correspondto one of the closed account numbers, then the customer is allowed entrythrough the transit gates or turnstiles (step 715). If, however, thegate terminal determines that the present customer's MT number matches anumber on the closed accounts database, the gate terminal disables thetransaction instrument (step 720), and the customer is then deniedaccess into the mass transit system (step 725). Generally speaking, thelist of closed accounts is much smaller than the list of active accountsand therefore is easier to store on individual gate terminals and easierto update periodically from a centralized database.

Alternatively, the gate terminal may store a list of active account MTnumbers, and the customer's MT number may be checked to verify that itis on the list of active MT numbers, which is also provided by theinstrument issuer. This list may be stored in the gate terminal andperiodically updated from a centralized database, or alternatively, maybe stored in a local database, e.g., a server located at the masstransit station that is connected to the gate terminals by a network.When the gate terminal determines that the present customer's masstransit number is active, the customer is allowed entry into the masstransit system. Such active number lookup, however, is an optional step,allowing the mass transit operator to maintain additional information onwhich MT numbers are active as well as which are closed.

When the user is allowed access, the gate terminal circuitry transmits arecord of the transaction over a network to the mass transit operator'stransactions database for subsequent storage. In the present invention,therefore, the mass transit operator is treated as a “merchant”,providing transportation services. As such, the gate terminal at anystation is treated as the point-of-sale location at which transactionsare conducted. As the customer passes through the gate terminal, thesystem indicates there is sufficient fare on the customer's transactioninstrument. In contrast to conventional transit fare cards, which aretypically stored-value cards from which a fare is deducted, thetransaction instrument in the present invention is always “full,”because the customer is billed as with any other retail credit cardpurchase, namely, at the close of a billing period. Consequently, theuser receives the benefit of always being able to ride a mass transitsystem without ever needing to refill their payment device, provided ofcourse that their MT number has not been listed as closed by thetransaction instrument issuer.

For each ride, the mass transit operator records the “transaction”corresponding to the customer's MT number and does so over a fixedbilling period, for example, one week or one month (step 730). Thesetransactions are stored in the transactions database of the mass transitoperator, over the course of the billing period, to be consolidated intoa single transaction to be submitted to the transaction instrumentissuer at the end of the billing period.

Furthermore, the present invention may be implemented with anyconventional mass transit environment, whether it be a flat fee per rideas used, for instance, by the New York City and Chicago TransitAuthorities or, otherwise, a fare based on a distance traveled andtime-of-day as is the case with the Washington Metropolitan Area TransitAuthority. This is because it is possible for the mass transit operatorto record and store the “transaction” in a number of ways. Regardless ofthe particular fare schedule, each transaction made using thetransaction instrument is recorded and stored by the particular masstransit operator.

More precisely, in a first embodiment, the mass transit operator mayrecord each entry and exit of a user with an MT number while alsocalculating the fare amount due for each use of the mass transit systemas it occurs. In this embodiment, the number of entries and exits isrecorded contemporaneously with the fare calculation for each use.

Alternatively, the mass transit operator may record each entry and exitfor a particular MT number over a set period of time, therebymaintaining a running tally of use on its system. At the end of the timeperiod, the mass transit operator then calculates the total amount dueat its facility. This deferred calculation of the total fares due ismost routinely used under the present invention.

Further still, the mass transit operator may record a particular user'snumber of entries and exits over a period of time, and subsequentlyforward this total, along with its standard payment schedule, to thefinancial instrument issuer for calculation of the amount due. In suchembodiment, the instrument issuer such as American Express thencalculates the total price owed the mass transit operator afterreceiving the number of “transactions” and fare schedule over a network.

At the same time, for mass transit systems that charge a flat fee perride, the mass transit operator records only the entry of an MT numberonto its subways or busses, but may then calculate the fare(s) dueaccording to any one of the foregoing methods.

Each instance in which a customer rides a particular mode oftransportation (or even uses a parking facility of the transit operator)along the mass transit system, including a subway, bus, train and thelike, constitutes a “transaction” that is recorded on the database ofthe mass transit operator. Because, for the various reasons discussedabove, processing a complete credit card authorization for each ride isimpractical, in the present invention the total fare for the rides in abilling cycle is instead aggregated by the mass transit operator into asingle “transaction” for subsequent settlement with the transitioninstrument issuer.

Specifically, upon either entry of or exit from a mass transit system,rather than performing a credit card authorization at that veryinstance, the gate terminal receives the MT number of the user via theradio frequency communication with the card or key chain fob. At thistime, the gate terminal circuitry records the “transaction” as data,which is then forwarded over a network to the transactions database ofthe mass transit operator for storage.

Once the total fare in the billing period for a given MT number has beenaggregated into a single transaction (step 735), the transaction mustthen be processed in order for the mass transit operator to receivepayment. Authorization is necessary because the payment of the total feeamount is conducted as any conventional credit card transaction afterthe mass transit operator has aggregated all of the individual feesincurred within a billing cycle. The financial transaction aspect of thepresent invention permits the user to conduct such “transaction” foreach ride on a mass transit system, and then defer payment for theindividual trips until the close of the billing period. In this way, thepresent invention functions much like a regular credit card purchase ofvarious items from a single retail merchant. However, unlikeconventional in-store or online credit card purchases, the processingand authorization for all of the rides occurs at the end of the billingperiod, rather than contemporaneous with the actual purchase. Under thepresent invention, a number of processes are available for settling thetransaction (step 740).

In a preferred embodiment, the mass transit operator obtains settlementby requesting the transaction account number (i.e., credit card number)associated with a given MT number, in order to have the transactionprocessed. This process is outlined in FIG. 8. The transit accountssystem of a mass transit operator only stores MT numbers for trackingand recording rider usage and fares. Therefore, the mass transitoperator requests the transaction account number associated with the MTnumber by contacting the transaction instrument issuer over a network,including perhaps, the Internet, (depicted as element 175 in FIG. 1) toinitiate settlement (step 810). Once the instrument issuer receives therequest, the transaction accounts server at the instrument issuerfacility matches the submitted MT number with the correspondingtransaction account number stored in the transaction accounts database(step 815). This matching may be accomplished automatically by thetransaction accounts server 110. In either case, the MT number inquestion is referenced against the account database to retrieve thecorresponding transaction account number.

When the MT number has been matched by the instrument issuer with thetransaction account number for the transaction instrument (e.g., thecredit card number), this information is forwarded by the issuer, overthe secure network, back to the mass transit operator (step 820). Then,as with any conventional credit card processing operation, the masstransit operator may append the amount of the “transaction”, along withtheir merchant ID to the received transaction account number, and sendthis data to either an acquirer or directly to the issuer over a secure“payment network” (depicted as element 140 in FIG. 1), for authorizationand settlement (step 825). This payment network may be any dedicated,proprietary network known in the art including, for example, theAmerican Express® Network, specifically configured to accommodatetransactions for credit cards and other types of financial/banking cardsover a secure channel. The transmitting of the information from the masstransit operator to the acquirer or issuer may be accomplished inaccordance with any conventional method for completing a transactionusing network data transmission.

As with any conventional credit card transaction, payment of the masstransit fees may include initial authorization, as outlined in FIG. 8A.For instance, when the user takes a ride on the subway using theirfinancial transaction instrument, the mass transit operator, acting as amerchant, will forward the amount of the ride, say $1.50, along with thecustomer's MT number and their merchant ID to the transaction instrumentissuer for authorization (step 825A). This may be done on a daily,weekly, or monthly schedule. The transaction instrument issuer may thenreturn a responsive authorization code or message to the mass transitoperator, authorizing each of the customer's individual transactions(step 825B). The individual authorizations are then stored by the masstransit operator over a set period of time, to be aggregated at theclose of such period for final settlement. The authorization ofindividual transactions also allows the transaction instrument issuer tomaintain a catalogue or tallied series of each separate “purchase” (thatis, use of a service provided by the mass transit operator), so thatonce the purchases are subsequently aggregated into a single“transaction” on the user's statement, the user is able to dispute anyindividual charge for which they have been billed (step 825C). This, inturn, satisfies all regulatory requirements that transaction instrumentissuers allow cardmembers the opportunity to dispute each individualpurchase. It is understood that the foregoing process for authorizationmay be included as part of any method for settlement described herein.

Returning to FIG. 8, at the end of a specified period of time (e.g., aday, week or month), the individual authorizations are aggregated by themass transit operator for a particular MT number, and are forwarded tothe transaction instrument issuer as a settlement request for the totalaggregated amount (step 830). As an additional safeguard, thetransaction instrument issuer may optionally request that the individualauthorization messages be sent along with the settlement request. Thetransaction instrument issuer will then credit the mass transit operatorthe total aggregated amount due thereby allowing funds to be disbursed,and subsequently bill the user for the money owed by issuing a statementto the customer for the amount due (step 835).

Alternatively, however, in the system of the present invention finalpayment of the mass transit fees need not require individualauthorization messages by the transaction instrument issuer. In suchembodiment, the mass transit operator simply aggregates the individualuses of its service(s) by a customer over a fixed period of time, andsubmits the aggregated amount, together with the customer's MT numberand their merchant ID, to the transaction instrument issuer forsettlement. Regardless of whether individual authorization occurs, afterthe transit operator receives payment (step 835), the issuer bills theaccount holder at the end of the billing period (step 840).

Using the current embodiment, the mass transit operator does not storeon any of its databases the transaction account numbers of individualriders. Therefore, sensitive information cannot be stolen from the masstransit operator, which thus provides a significant security measure forprotecting customers with linked transaction instruments. By keepingusers' transaction account numbers as a transient data flow, the presentinvention affords secured payment settlement in today's age of frequentidentity theft and credit card fraud.

Alternatively, in another embodiment of the present invention, the masstransit operator obtains payment by submitting an encrypted secondaryaccount number for authentication by the issuer along with everysettlement request, as depicted in FIG. 9. Under this embodiment, theinstrument issuer initially provides the mass transit operator with asecondary account number associated with the user's financialtransaction account. The secondary account number is in a special rangeof numbers that requires authentication for payment requests to beprocessed by the instrument issuer. The mass transit operator thenassociates this secondary number with the user's MT number. When issuinga payment request, this secondary account number is then encrypted witha digital signature identifying the mass transit operator and validatingtheir authenticity as a merchant (step 905). The digital signature maybe any conventional encryption technique including, for example, asystem of symmetric or public/private encryption keys for authenticatingthe sender of the payment request.

At the close of a billing period, the mass transit operator aggregatesthe fares and fees associated with an MT number into a singletransaction, calculates a total amount due, and submits this informationtogether with the secondary account number and their digital signatureto the instrument issuer. The data may be forwarded over anyconventional payment network linking the mass transit operator to theinstrument issuer (step 910). To illustrate, the mass transit operatormay use its own private electronic key to encrypt the payment requestwith its digital signature.

When the issuer receives the data, it proceeds to authenticate thedigital signature associated with the payment request (step 915). Anoperator at the facility of the instrument issuer may decrypt thedigital signature using, for instance, the public key for the masstransit operator. The digital signature is authenticated as originatingfrom the mass transit operator because only that operator could haveencrypted the data with its private key. Of course, the foregoingexample is intended only to illustrate one possible method forencryption as used in the present embodiment, and therefore does notlimit the present invention. Indeed, numerous other methods forsupplying a digital signature may be utilized herein. In this way, ifthe secondary account number is somehow stolen during transmission, anyfraudulent payment request will not be accompanied by the necessarycryptographic data, i.e., digital signature, so as to authenticate therequest. Hence, the issuer will refuse to authorize any payment requestwithout a proper digital signature.

As further shown in FIG. 9, the instrument issuer may then match thesecondary account number with the transaction account number of the useronce it has verified the identity of the mass transit operator bydecrypting the digital signature of the payment request (step 920). Toaccomplish the matching, the transaction accounts server at the facilityof the instrument issuer may reference the secondary number against thedata stored in its system to arrive at the corresponding transactionaccount.

Following authentication of the source of the payment request andmatching of the secondary transaction account number cryptographic datawith the user's transaction account, authorization and settlement mayproceed as earlier described (step 925). Once the settlement request isreceived, the issuer credits the account of the mass transit operatorfor the amount due (step 930), thus completing merchant payment. Thepayment amount for the entire transaction then appears on the user'speriodic statement from the issuer (step 935).

FIG. 10 presents yet another embodiment of the present invention,wherein settlement of the transaction is accomplished almost exclusivelyat the transaction instrument issuer's end. Following aggregation of thefares and fees at the close of a billing cycle, the mass transitoperator appends their merchant ID along with the total amount owed to agiven MT number, and transmits this information over a network (depictedas element 175 in FIG. 2) to the transaction instrument issuer (step1005). The data may be encrypted by any conventional algorithm or othersecurity device for the protection of data during transmission that isknown in the art.

When the instrument issuer receives the MT number with the amount owedand merchant ID, the issuer proceeds to match this data with atransaction account stored on its system (step 1010). As soon as thecorresponding transaction account number is located from the accountsdatabase, the issuer may authorize and process the transaction accordingto any conventional method for conducting a financial card transaction(step 1015). For instance, the transaction instrument issuer willdetermine whether the transaction account number is valid and whether toapprove or decline the transaction by determining whether the accountholder has sufficient credit to cover the cost of the total transactionat a financial institution (i.e., the user's bank). Again, once thesettlement request is received, the financial institution authorizes atransfer of money to the transaction instrument issuer (step 1020). Theinstrument issuer, in turn, credits the account of the mass transitoperator for the amount due (step 1025).

In this third embodiment, the mass transit operator again does not storeany transaction account numbers that are linked with its MT numbers.Instead, all information pertaining to the transaction account remainswith the transaction instrument issuer, less accessible to potentialtheft. Therefore, settlement of the transaction in the present inventiondoes not involve use of a customer's sensitive financial data by themass transit operator.

The foregoing methods for payment settlement under the present inventionare merely illustrative of preferred processes for settlement of thetransaction price between the mass transit operator and instrumentissuer and, hence, do not limit the invention to only these methods forprocessing payment. Indeed, numerous methods for settlement of thetransaction may be available for use with the present invention.

FIG. 11 shows an example of how a user conducts a transaction using thetransaction instrument to pay for mass transit fares. The customer firstestablishes a transaction account with the account issuer and requeststhat their transaction instrument be linked with the mass transitfunction as described above, or the user may have previously opened atransaction account and now wishes to use the account to pay for masstransit. In this particular example, the user already has an activatedtransaction instrument for retail purchases and proceeds to use theirinstrument to ride a subway. The user arrives at a station of the masstransit system (step 1105), say, the Foggy Bottom-GWU station along theblue and orange routes of the Washington Metropolitan Area TransitAuthority (WMATA). As the customer approaches the gate terminal, theywave their transaction instrument (e.g., ExpressPay™ Card withincorporated MT number) over the gate reader (step 1110) to effectuateinterrogation via the radio frequency exchange between the transponderin the device and the RFID reader within the gate terminal (step 1115).

The internal circuitry of the gate terminal references the user's MTnumber, received by the radio frequency, against the closed MT numbersstored in the closed account database (element 160 in FIG. 3) within thegate terminal (step 1120). Optionally, the internal circuitry of thegate terminal may likewise reference an active accounts database todetermine whether the user's MT number is stored therein (step 1125).Assuming the user's MT number is not on the list of closed MT numbersreceived from the issuer (e.g., the American Express Company), thecircuitry of the gate reader will open the gate. The user passes thenthrough the terminal and boards the subway (step 1130) for their ride onthe WMATA mass transit system (step 1135).

Upon arrival at their destination, perhaps the Crystal City station, theuser approaches the gate terminals and again waves their transactioninstrument over the reader (step 1140). At this time, the mass transitfare “transaction” is completed with the circuitry at the gate terminalauthenticating the presented MT number (step 1145), transmitted viaradio frequency, and opening the gates to permit the user to exit thestation. Simultaneously, a processor as part of WMATA's system performsa calculation for the fare owed based on the distance traveled by theuser. To illustrate, such fare may amount to $2.65. A record of the ridecorresponding to the user's MT number is stored on WMATA's transactionsdatabase, along with the fare amount for subsequent aggregation.

Meanwhile, the user exits the Crystal City station without theinconvenience of either waiting for processing of the credit cardtransaction for that particular ride or having to remember how muchvalue is left on their transaction instrument. At the end of the month,the total fare from all rides, as well as any other mass transit fees,such as parking fees, will appear as a single transaction from WMATA asthe merchant on the customer's credit card statement.

IV. Example Implementations

The present invention (i.e., system 105, process 700 or any part(s) orfunction(s) thereof) may be implemented using hardware, software or acombination thereof and may be implemented in one or more computersystems or other processing systems. Useful machines for performing theoperation of the present invention include general purpose digitalcomputers or similar devices.

In fact, in one embodiment, the invention is directed toward one or morecomputer systems capable of carrying out the functionality describedherein. An example of a computer system 1200 is shown in FIG. 12.

The computer system 1200 includes one or more processors, such asprocessor 1204. The processor 1204 is connected to a communicationinfrastructure 1206 (e.g., a communications bus, cross-over bar, ornetwork). Various software embodiments are described in terms of thisexemplary computer system. After reading this description, it willbecome apparent to a person skilled in the relevant art(s) how toimplement the invention using other computer systems and/orarchitectures.

Computer system 1200 can include a display interface 1202 that forwardsgraphics, text, and other data from the communication infrastructure1206 (or from a frame buffer not shown) for display on the display unit1230.

Computer system 1200 also includes a main memory 1208, preferably randomaccess memory (RAM), and may also include a secondary memory 1210. Thesecondary memory 1210 may include, for example, a hard disk drive 1212and/or a removable storage drive 1214, representing a floppy disk drive,a magnetic tape drive, an optical disk drive, etc. The removable storagedrive 1214 reads from and/or writes to a removable storage unit 1218 ina well-known manner. Removable storage unit 1218 represents a floppydisk, magnetic tape, optical disk, etc. which is read by and written toby removable storage drive 1214. As will be appreciated, the removablestorage unit 1218 includes a computer usable storage medium havingstored therein computer software and/or data.

In alternative embodiments, secondary memory 1210 may include othersimilar devices for allowing computer programs or other instructions tobe loaded into computer system 1200. Such devices may include, forexample, a removable storage unit 1222 and an interface 1220. Examplesof such may include a program cartridge and cartridge interface (such asthat found in video game devices), a removable memory chip (such as anerasable programmable read only memory (EPROM), or programmable readonly memory (PROM)) and associated socket, and other removable storageunits 1222 and interfaces 1220, which allow software and data to betransferred from the removable storage unit 1222 to computer system1200.

Computer system 1200 may also include a communications interface 1224.Communications interface 1224 allows software and data to be transferredbetween computer system 1200 and external devices. Examples ofcommunications interface 1224 may include a modem, a network interface(such as an Ethernet card), a communications port, a Personal ComputerMemory Card International Association (PCMCIA) slot and card, etc.Software and data transferred via communications interface 1224 are inthe form of signals 1228 which may be electronic, electromagnetic,optical or other signals capable of being received by communicationsinterface 1224. These signals 1228 are provided to communicationsinterface 1224 via a communications path (e.g., channel) 1226. Thischannel 1226 carries signals 1228 and may be implemented using wire orcable, fiber optics, a telephone line, a cellular link, a radiofrequency (RF) link and other communications channels.

In this document, the terms “computer program medium” and “computerusable medium” are used to generally refer to media such as removablestorage drive 1214, a hard disk installed in hard disk drive 1212, andsignals 1228. These computer program products provide software tocomputer system 1200. The invention is directed to such computer programproducts.

Computer programs (also referred to as computer control logic) arestored in main memory 1208 and/or secondary memory 1210. Computerprograms may also be received via communications interface 1224. Suchcomputer programs, when executed, enable the computer system 1200 toperform the features of the present invention, as discussed herein. Inparticular, the computer programs, when executed, enable the processor1204 to perform the features of the present invention. Accordingly, suchcomputer programs represent controllers of the computer system 1200.

In an embodiment where the invention is implemented using software, thesoftware may be stored in a computer program product and loaded intocomputer system 1200 using removable storage drive 1214, hard drive 1212or communications interface 1224. The control logic (software), whenexecuted by the processor 1204, causes the processor 1204 to perform thefunctions of the invention as described herein.

In another embodiment, the invention is implemented primarily inhardware using, for example, hardware components such as applicationspecific integrated circuits (ASICs). Implementation of the hardwarestate machine so as to perform the functions described herein will beapparent to persons skilled in the relevant art(s).

In yet another embodiment, the invention is implemented using acombination of both hardware and software.

CONCLUSION

While various embodiments of the present invention have been describedabove, it should be understood that they have been presented by way ofexample, and not limitation. It will be apparent to persons skilled inthe relevant art(s) that various changes in form and detail can be madetherein without departing from the spirit and scope of the presentinvention. Thus, the present invention should not be limited by any ofthe above-described exemplary embodiments, but should be defined only inaccordance with the following claims and their equivalents.

In addition, it should be understood that the figures and screen shotsillustrated in the attachments, which highlight the functionality andadvantages of the present invention, are presented for example purposesonly. The architecture of the present invention is sufficiently flexibleand configurable, such that it may be utilized (and navigated) in waysother than that shown in the accompanying figures.

Further, the purpose of the foregoing Abstract is to enable the U.S.Patent and Trademark Office and the public generally, and especially thescientists, engineers and practitioners in the art who are not familiarwith patent or legal terms or phraseology, to determine quickly from acursory inspection the nature and essence of the technical disclosure ofthe application. The Abstract is not intended to be limiting as to thescope of the present invention in any way. It is also to be understoodthat the steps and processes recited in the claims need not be performedin the order presented.

1. A method, comprising: receiving, by a computer based system forpayment processing, a request for payment of a transit system entry fee,wherein the payment is from a financial transaction account; receiving,by the computer based system, an identification code, wherein theidentification code is associated with the transit system entry fee;associating, by the computer based system, the identification code witha transaction account code, wherein the transaction account code isassociated with the financial transaction account, and wherein theidentification code is distinct from the transaction account code; andsettling, by the computer based system, the request for payment of thetransit system entry fee.
 2. The method of claim 1, wherein the transitsystem fee is registered for use on the transit system.
 3. The method ofclaim 1, further comprising aggregating a plurality of the transitsystem fees associated with the identification code and incurred fromuse of the financial transaction instrument, to obtain aggregate transitsystem fees.
 4. The method of claim 3, further comprising settlingpayment for the aggregate transit system fees.
 5. The method of claim 1,further comprising recording the transit system fees associated with thesame identification code for each use of the transit system.
 6. Themethod of claim 1, wherein the identification code is created by a masstransit operator and is associated with a mass transit account.
 7. Themethod of claim 1, wherein an authorization message for the transitsystem fee is obtained prior to requesting payment for the transitsystem fee.
 8. The method of claim 1, wherein the secondary transactionaccount code is encrypted with a digital signature.
 9. The method ofclaim 1, wherein the identification code is associated with adesignation of a range of Mass Transit codes, each constituting aseparate identification and provided by a transit system operator. 10.The method of claim 1, wherein a plurality of transit system fees areregistered over a period of time and aggregated into a single financialtransaction.
 11. The method of claim 1, wherein a plurality of transitsystem fees are registered over a period of time and are tallied as aseries of individual transactions prior to aggregation into a singletransaction.
 12. The method of claim 1, wherein the transaction accountcode associated with the financial transaction account is not stored onthe transit system.
 13. The method of claim 1, wherein theidentification code permits entry into the transit system by beinginterrogated and recognized by radio frequency identification (RFID).14. The method of claim 1, wherein the identification code permits entryinto the transit system by being received from a magnetic stripe reader.15. The method of claim 1, wherein the identification code permits entryinto the transit system by being received from a smart card reader. 16.The method of claim 1, wherein the identification code is distinct froma transaction account code associated with the financial transactionaccount.
 17. The method of claim 1, wherein the identification code isderived from a transaction account code associated with the financialtransaction account.
 18. A system comprising: a non-transitory memorycommunicating with a processor for payment processing, the nontransitory memory having instructions stored thereon that, in responseto execution by the processor, cause the processor to perform operationscomprising: receiving, by the processor, a request for payment of atransit system entry fee, wherein the payment is from a financialtransaction account; receiving, by the processor, an identificationcode, wherein the identification code is associated with the transitsystem entry fee; associating, by the processor, the identification codewith a transaction account code, wherein the transaction account code isassociated with the financial transaction account, and wherein theidentification code is distinct from the transaction account code; andsettling, by the processor, the request for payment of the transitsystem entry fee.
 19. A non-transitory, tangible computer readablestorage medium having stored thereon computer executable instructionsthat, if executed by a computer based system for payment processing,cause the computer based system to perform operations comprising:receiving, by the computer based system, a request for payment of atransit system entry fee, wherein the payment is from a financialtransaction account; receiving, by the computer based system, anidentification code, wherein the identification code is associated withthe transit system entry fee; associating, by the computer based system,the identification code with a transaction account code, wherein thetransaction account code is associated with the financial transactionaccount, and wherein the identification code is distinct from thetransaction account code; and settling, by the computer based system,the request for payment of the transit system entry fee.